Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-01-21

sustain his position that the auction plan
was the most profitable to the grower.
Among others he read the following from
a prominent Florida fruit business man,
the Secretary of the Florida Fruit Union:
JACKSONVILLE Fla, January 9, 1887
IT. IVeinstock, Esq, Sacramento, Cdl.-DEAR SIR:
Your favor of December 3lst TO hand, and con
tents noted. Regarding the auction system, |
have this 70 say: 1t is a well-knowp TACT that
for upwards of fifty years Mediterranean fruit
has been sold in the United States through the
auction system almost exclusively. Last year
something like 100000 boxes of foreign fruit
were sold in the United States, and am informed
that nine enths of these were sold in New York
city alone Our experience with the auction
system so far has been highly satisfactory, and
the more familiar our people become with it the
stronger grows the liking for it. Personally /
consider it the only proper method for the sale
of all fruit. 1t disposes of the fruit quickly,
hence the money goes to the growers without
unnecessary and vexatious delays. When fruit
is sold at auction fixed price is put upon it !;
that fixed price is the amount the purchaser
pays If box of oranges brings So in the auc-
tion-room, the purchaser must sell for more
than So; he can't afford to sell for less thus the
market price is established. Auction brings the
dealers in competition; the old method Of sales
through commission houses places the fruit IN
competition with itself. But from your circu-
lars judge you fully understand all this, hence
will not bore you further.
Regarding your idea as to sales at auction at
all points that can take a carload, must say
our views differ widely. say, decidedly, sell
the large cities. Let these cities have certain
territories to supply. Take New York and
Boston, for instance. These two points han
die nearly all the Medite ranean fruit, yet
they supply nearly every market in the United
States Brokers in New York and Boston repre-
senting dealers all over the East and West at
tend the auction sales regularly. and purchase
immense quantities of fruit to fill their " ont OF
four - nrlar gt1nnlv
hamlet capable of taking carload. the result
would be low prices in these small towns, and
you would cut off the trade which would other
wise be forced to buy in the larger cities, thus
leaving the large cities with no outlet for their
fruit. In the small towns the buyers being few
in numbers can easily combine and agree to
bid only a certain sum for your fruit, and thus
secure it at almost any price they choose to
pay; portion of it must at least be sold at their
figures, but if the balance is Withdrawn and
held for future sale you are still in the same
box. | presume you have witnessed sales OF
fruit at auction in the larger cities, New York,
at least, and, having done so, you will no doubt
agree with me that such combination as
mentioned above is wholly impracticable in a
place like New York or Chicago.
/ trust have placed my views so that you can
use them to an advantage. l am very deeply in
terested i'll the struggle you people are making
to throw off the old yoke commission sales),
and l heartily wish you God speed in your I'M
dertaking- Very truly yours, A. NJ. IVES
Mr. Weinstock read letters from Boston
commission merchants. setting forth that
large quantities of California fruits could
be disposed of by auction. The letters
contained prices which Florida products
had commanded. One letter said that the
fruit going to twenty houses, cutting the
Threats of each other, would result in kill
ing the market; but one auction for the
consignment would firmly establish prices.
The private sales system the speaker re-
garded as ruinous 1t choked competition
by process of combination of agents, Civ
ing exclusive control in each large district
to the combination. We must encourage
the keenest competition among retailers.
We appoint man in Milwaukee, for in
stance, as our agent. This man is engaged
in other business interests. A dealer comes
to him and says: IF you will permit me
to handle your California fruits, l will give
you all my trade in some other important
margin for profit and acquiesces, and COM
petition for our fruits is practically denied.
Mr.. Weinstock was applauded by the
audience in very cordial manner.
Mr.. Block, of Santa Clara, described some
features of the auction business, citing one
where six lots of products were on sale and
only six bidders present. The result was
that each bidder obtained the particular lot
he wanted, at his own price.
Judge Blackwood, of Alameda, said that
if we go into the auction system it should
be gone into thoroughly, 50 that it should
be understood that every pound shipped
East should be sold to the highest bidder.
Why, it has been the custom in New York
for years to sell every pound of tea coming
from China and Japan at auction The
commission business no longer prevails in
these articles. Let our fruits be fairly
advertised at auction and give the bid
ders fair chance to compete. Let the auc-
tioneer be notified when the fruit will ar
rive. Let men ship what they have mind
to. If poor fruit is shipped and does not
command good price, the shipper of the
poor fruit is the sufferer. Let us give the
auction plan fair trial. do not say that
it should be adopted in every town, but in
large cities like Chicago, Boston, New York,
PHILADELPHIA Cleveland, Baltimore, Mil
waukee and Cincinnati, it should be estab-
lished and fairly tested.
Mr.. Buck, of Vacaville, desired the
whole subject referred to the Board of Di-
rectors, giving them discretionary power
to dispose of all fruits.
Mr.. Markley thought the auction plan of
sales might be the best possible way of sell
ing our fruit, but thought it better to simply
recommend it to the Board of Trustees for
adoption or to give them authority to sell
in the manner, if their judgment so dicta-
ted, he therefore moved that instead of
adopting the new section above proposed
by Mr.. Weinstock, to add to the present
Section 10 the following:
The Board of Trustees are authorized
to sell fruit at auction when in their judg
ment they think best to do SO. Subscribers
to the stock shall contract with the other
subscribers that they will not sell any
fruits for Eastern shipment to any except
members of said union eastern shipment
meaning east of OGDEN, reserving the
right to sell any and all fruits for any other
purpose"
After q quite lengthy discussion, this
amendment was adopted.
Mr.. Block suggested that the bylaws
should be so amended as to authorize the
Board of Trustees to appoint an Assistant
Manager, if in its judgment the same is
needed He said if one had been employed
in the East this last season no such work
as has lust come to light-in which Dud-
ley, Clap & Doe, of New York, had the
pick of the cars of fruit, and at their own
price-would never have taken place.
a discussion followed, in which it was
claimed that the bylaws already give the
Board ample power to employ all persons
required to transact the business of the
association.
Mr.. Block moved that Section 1 be
amended so as to include the authority to
employ an Assistant Manager.
After some further discussion the matter
was voted down, for the reason that the
power is already conferred upon the Trus-
tees by the bylaws.
Mr.. Weinstock moved to amend Section
10 by striking out the words, " Provided
that for all fruit andyegetables so consigned
a commission of not to exceed 5 per cent.
of the sale value of said fruits and veget-
ables and the actual freight, shall be paid
to the Union"
The motion was seconded and a discus
sion followed.
Mr.. Block objected to striking out the
entire per cent, as it was source OF rev.
enue to the Union, and this was matter
that could not be overlooked.
Mr. Weinstock replied that inasmuch as
10 per cent. commission was allowed the
Eastern agent in accordance with the by
laws. that this would still be taken from
the sales, and as the work of selling could
be done at the East for from to 4! per
cent, margin of 2! to per cent. could
thus be saved and come into the hands of
the treasury for expenses.
2. Z. Platt said the fruit could all be sold
for commission of 10 per cent, and cover
the q or 3 per cent, as stated by Mr.. Vein